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Torts
and Damages:

TITLE
XVIII

Damages
1

CHAPTER
1

General
Provisions

ARTICLE
2195. The provisions of this Title shall be respectively applicable
to all obligations mentioned in article 1157.

ARTICLE
2196. The rules under this Title are without prejudice to special
provisions on damages formulated elsewhere in this Code. Compensation
for workmen and other employees in case of death, injury or illness
is regulated by special laws. Rules governing damages laid down
in other laws shall be observed insofar as they are not in conflict
with this Code.

ARTICLE
2197. Damages may be:

(1)
Actual or compensatory;

(2)
Moral;

(3)
Nominal;

(4)
Temperate or moderate;

(5)
Liquidated; or

(6)
Exemplary or corrective.
ARTICLE 2198. The principles of the general law on damages are hereby
adopted insofar as they are not inconsistent with this Code.

CHAPTER
2

Actual
or Compensatory Damages

ARTICLE
2199. Except as provided by law or by stipulation, one is entitled
to an adequate compensation only for such pecuniary loss suffered
by him as he has duly proved. Such compensation is referred to as
actual or compensatory damages.

ARTICLE 2200. Indemnification for damages shall comprehend not only
the value of the loss suffered, but also that of the profits which
the obligee failed to obtain. (1106)

ARTICLE
2201. In contracts and quasi-contracts, the damages for which the
obligor who acted in good faith is liable shall be those that are
the natural and probable consequences of the breach of the obligation,
and which the parties have foreseen or could have reasonably foreseen
at the time the obligation was constituted.

In case of fraud, bad faith, malice or wanton attitude, the obligor
shall be responsible for all damages which may be reasonably attributed
to the non-performance of the obligation. (1107a)

ARTICLE
2202. In crimes and quasi-delicts, the defendant shall be liable
for all damages which are the natural and probable consequences
of the act or omission complained of. It is not necessary that such
damages have been foreseen or could have reasonably been foreseen
by the defendant.

ARTICLE
2203. The party suffering loss or injury must exercise the diligence
of a good father of a family to minimize the damages resulting from
the act or omission in question.

ARTICLE
2204. In crimes, the damages to be adjudicated may be respectively
increased or lessened according to the aggravating or mitigating
circumstances.

ARTICLE
2205. Damages may be recovered:

(1)
For loss or impairment of earning capacity in cases of temporary
or permanent personal injury;

(2)
For injury to the plaintiff's business standing or commercial credit.

ARTICLE
2206. The amount of damages for death caused by a crime or quasi-delict
shall be at least three thousand pesos, even though there may have
been mitigating circumstances. In addition:

(1)
The defendant shall be liable for the loss of the earning capacity
of the deceased, and the indemnity shall be paid to the heirs of
the latter; such indemnity shall in every case be assessed and awarded
by the court, unless the deceased on account of permanent physical
disability not caused by the defendant, had no earning capacity
at the time of his death;

(2)
If the deceased was obliged to give support according to the provisions
of article 291, the recipient who is not an heir called to the decedent's
inheritance by the law of testate or intestate succession, may demand
support from the person causing the death, for a period not exceeding
five years, the exact duration to be fixed by the court;

(3)
The spouse, legitimate and illegitimate descendants and ascendants
of the deceased may demand moral damages for mental anguish by reason
of the death of the deceased.

ARTICLE
2207. If the plaintiff's property has been insured, and he has received
indemnity from the insurance company for the injury or loss arising
out of the wrong or breach of contract complained of, the insurance
company shall be subrogated to the rights of the insured against
the wrongdoer or the person who has violated the contract. If the
amount paid by the insurance company does not fully cover the injury
or loss, the aggrieved party shall be entitled to recover the deficiency
from the person causing the loss or injury.

ARTICLE
2208. In the absence of stipulation, attorney's fees and expenses
of litigation, other than judicial costs, cannot be recovered, except:

(1)
When exemplary damages are awarded;

(2)
When the defendant's act or omission has compelled the plaintiff
to litigate with third persons or to incur expenses to protect his
interest;

(3)
In criminal cases of malicious prosecution against the plaintiff;

(4)
In case of a clearly unfounded civil action or proceeding against
the plaintiff;

(5)
Where the defendant acted in gross and evident bad faith in refusing
to satisfy the plaintiff's plainly valid, just and demandable claim;

(6)
In actions for legal support;

(7)
In actions for the recovery of wages of household helpers, laborers
and skilled workers;

(8)
In actions for indemnity under workmen's compensation and employer's
liability laws;

(9)
In a separate civil action to recover civil liability arising from
a crime;

(10)
When at least double judicial costs are awarded;

(11)
In any other case where the court deems it just and equitable that
attorney's fees and expenses of litigation should be recovered.

In
all cases, the attorney's fees and expenses of litigation must be
reasonable.

ARTICLE
2209. If the obligation consists in the payment of a sum of money,
and the debtor incurs in delay, the indemnity for damages, there
being no stipulation to the contrary, shall be the payment of the
interest agreed upon, and in the absence of stipulation, the legal
interest, which is six per cent per annum. (1108)

ARTICLE 2210. Interest may, in the discretion of the court, be allowed
upon damages awarded for breach of contract.

ARTICLE
2211. In crimes and quasi-delicts, interest as a part of the damages
may, in a proper case, be adjudicated in the discretion of the court.

ARTICLE
2212. Interest due shall earn legal interest from the time it is
judicially demanded, although the obligation may be silent upon
this point. (1109a)

ARTICLE
2213. Interest cannot be recovered upon unliquidated claims or damages,
except when the demand can be established with reasonable certainty.

ARTICLE
2214. In quasi-delicts, the contributory negligence of the plaintiff
shall reduce the damages that he may recover.

ARTICLE
2215. In contracts, quasi-contracts, and quasi-delicts, the court
may equitably mitigate the damages under circumstances other than
the case referred to in the preceding article, as in the following
instances:

(1)
That the plaintiff himself has contravened the terms of the contract;

(2)
That the plaintiff has derived some benefit as a result of the contract;

(3)
In cases where exemplary damages are to be awarded, that the defendant
acted upon the advice of counsel;

(4)
That the loss would have resulted in any event;

(5)
That since the filing of the action, the defendant has done his
best to lessen the plaintiff's loss or injury.

CHAPTER
3

Other
Kinds of Damages

ARTICLE
2216. No proof of pecuniary loss is necessary in order that moral,
nominal, temperate, liquidated or exemplary damages, may be adjudicated.
The assessment of such damages, except liquidated ones, is left
to the discretion of the court, according to the circumstances of
each case.

SECTION
1

Moral
Damages

ARTICLE
2217. Moral damages include physical suffering, mental anguish,
fright, serious anxiety, besmirched reputation, wounded feelings,
moral shock, social humiliation, and similar injury. Though incapable
of pecuniary computation, moral damages may be recovered if they
are the proximate result of the defendant's wrongful act for omission.

ARTICLE
2218. In the adjudication of moral damages, the sentimental value
of property, real or personal, may be considered.

ARTICLE
2219. Moral damages may be recovered in the following and analogous
cases:

(1)
A criminal offense resulting in physical injuries;

(2)
Quasi-delicts causing physical injuries;

(3)
Seduction, abduction, rape, or other lascivious acts;

(4)
Adultery or concubinage;

(5)
Illegal or arbitrary detention or arrest;

(6)
Illegal search;

(7)
Libel, slander or any other form of defamation;

(8)
Malicious prosecution;

(9)
Acts mentioned in article 309;

(10)
Acts and actions referred to in articles 21, 26, 27, 28, 29, 30,
32, 34, and 35.
The parents of the female seduced, abducted, raped, or abused, referred
to in No. 3 of this article, may also recover moral damages.

The
spouse, descendants, ascendants, and brothers and sisters may bring
the action mentioned in No. 9 of this article, in the order named.

ARTICLE
2220. Willful injury to property may be a legal ground for awarding
moral damages if the court should find that, under the circumstances,
such damages are justly due. The same rule applies to breaches of
contract where the defendant acted fraudulently or in bad faith.

SECTION
2

Nominal
Damages

ARTICLE
2221. Nominal damages are adjudicated in order that a right of the
plaintiff, which has been violated or invaded by the defendant,
may be vindicated or recognized, and not for the purpose of indemnifying
the plaintiff for any loss suffered by him.

ARTICLE
2222. The court may award nominal damages in every obligation arising
from any source enumerated in article 1157, or in every case where
any property right has been invaded.

ARTICLE
2223. The adjudication of nominal damages shall preclude further
contest upon the right involved and all accessory questions, as
between the parties to the suit, or their respective heirs and assigns.

SECTION
3

Temperate
or Moderate Damages

ARTICLE
2224. Temperate or moderate damages, which are more than nominal
but less than compensatory damages, may be recovered when the court
finds that some pecuniary loss has been suffered but its amount
can not, from the nature of the case, be provided with certainty.

ARTICLE
2225. Temperate damages must be reasonable under the circumstances.

SECTION
4

Liquidated
Damages

ARTICLE
2226. Liquidated damages are those agreed upon by the parties to
a contract, to be paid in case of breach thereof.

ARTICLE
2227. Liquidated damages, whether intended as an indemnity or a
penalty, shall be equitably reduced if they are iniquitous or unconscionable.

ARTICLE
2228. When the breach of the contract committed by the defendant
is not the one contemplated by the parties in agreeing upon the
liquidated damages, the law shall determine the measure of damages,
and not the stipulation.

SECTION
5

Exemplary
or Corrective Damages

ARTICLE
2229. Exemplary or corrective damages are imposed, by way of example
or correction for the public good, in addition to the moral, temperate,
liquidated or compensatory damages.

ARTICLE
2230. In criminal offenses, exemplary damages as a part of the civil
liability may be imposed when the crime was committed with one or
more aggravating circumstances. Such damages are separate and distinct
from fines and shall be paid to the offended party.

ARTICLE
2231. In quasi-delicts, exemplary damages may be granted if the
defendant acted with gross negligence.

ARTICLE
2232. In contracts and quasi-contracts, the court may award exemplary
damages if the defendant acted in a wanton, fraudulent, reckless,
oppressive, or malevolent manner.

ARTICLE
2233. Exemplary damages cannot be recovered as a matter of right;
the court will decide whether or not they should be adjudicated.

ARTICLE
2234. While the amount of the exemplary damages need not be proved,
the plaintiff must show that he is entitled to moral, temperate
or compensatory damages before the court may consider the question
of whether or not exemplary damages should be awarded. In case liquidated
damages have been agreed upon, although no proof of loss is necessary
in order that such liquidated damages may be recovered, nevertheless,
before the court may consider the question of granting exemplary
in addition to the liquidated damages, the plaintiff must show that
he would be entitled to moral, temperate or compensatory damages
were it not for the stipulation for liquidated damages.

ARTICLE
2235. A stipulation whereby exemplary damages are renounced in advance
shall be null and void.